Low Mississippi River Levels Again Jeopardize Farm Income

By Daniel Munch

Close to half of all U.S. corn, soybeans and wheat exports move through the Mississippi River system, making it one of the most important export corridors in the world. Over the past five years, an average of 65 million metric tons of bulk agricultural product traveled by barge to terminals near New Orleans, where shipments were loaded onto ocean vessels bound for global customers. This inland waterway remains the most cost-effective way to connect Midwestern farms to foreign markets, ensuring U.S. agriculture can compete on price and reliability.

However, for the fourth  consecutive  year, historically low river levels are threatening that critical connection to global markets. Persistent drought has once again reduced the depth and width of the navigation channel, forcing barges to carry lighter loads, limiting tow sizes and pushing transportation costs higher. These conditions, arriving during the peak of harvest, are putting additional pressure on farmgate prices and raising concerns about the competitiveness of U.S. grain exports.

Why Barges on the Mississippi River?

For decades, the Mississippi River has provided U.S. farmers with a decisive cost advantage in global markets. U.S. inland waterways save shippers an estimated $7 billion to $9 billion each year compared to rail or truck alternatives. A single barge can carry roughly 1,750 tons of grain, and a standard 15-barge tow (a common sight on the Mississippi) moves as much cargo as two 100-car-unit trains or about 1,000 semi-trucks. That scale, combined with lower fuel use and lower labor per ton, makes barge transport the most economical option for moving bulk commodities. When water levels are normal, this efficiency keeps delivered costs low, strengthens export bids at Gulf terminals and supports stronger local prices for farmers. But when the river runs shallow, that advantage quickly erodes and barges must carry lighter loads, requiring additional trips and increasing the per-ton cost of shipping grain.